NETFLIX
HISTORY
Imagine you on a Netflix and chill vibe! But a thought comes to your
mind how this all started? No worries, the answer to your thought is here.
The original idea behind Netflix came in 1997 where it provided online movie
rental service. In 1999 it began to provide online subscription service through
internet. Subscribers could choose movies and television titles online and they
will be delivered in the form of DVD’s, along with prepaid return envelopes.
But it took a turn in 2007, when Marc Randolph and Reed Hastings (Netflix founders)
decided to partnership with Starz to bring 2,500+ new films online and shows to
watch instantly to its users. This deal
increased the annual spending fees to around $200 million per year.
In October 2019, it had over 151 million paid subscribers in over 190
countries around the world. It offers a wide range of TV series, documentaries, and
feature films across a wide variety of genres and languages.
Fun Fact:
Netflix still has around 3 million subscribers for its DVD’s service.
PRODUCTS
Netflix came out with various products to introduce built in system. The
products are as follows:
1.
Netflix player- This would allow Netflix to directly
connect with the tv sets. But this was shut down by Reed Hastings to promote
built in Netflix support.
2.
The Switch- This allowed user to turn off lights when
connected to smart home light systems.
3.
The Button- This was introduced for certain remote
controls to allow users to instantly connect to compatible devices.
Netflix focused on providing a built-in service to its users so that its
easily available and affordable too.
Fun Fact:
Netflix spends more than $150 million every year on improving their
recommendation every year.
ACQUISTIONS
The CEO of Netflix, Reed Hastings don’t plan for any new big future
acquisitions, and has not till date done many acquisitions. The company
believes it has plenty of room for improving its service and developing new
shows. Till now, Netflix has made following acquisitions:
1.
ABQ Studios
2.
Millarworld
3.
Storybots
Fun Fact:
Netflix is worth 770
times today what it was at the time of Initial Public Offer (IPO). Netflix
shares at its IPO were sold for just $15.
MARKETING STRATEGY/AD CAMPAIGNS
Being active on social media accounts becomes an important part of
Netflix. I mean just imagine u being retweeted for a meme by the official
account of Netflix. Indeed, that’s a pleasure.
Netflix has been using non-traditional ways to promote its shows. It has
collaborated with dozens of brands including Coca-Cola, Baskin-Robbins, and
Burger King to promote its original shows. Netflix also provides tailor-based
services which provides a special place in the heart of the users. I mean
stalking your account for your own good. It’s like being in a relationship and taken
care of your interests. That’s interesting!
Netflix also places immense stress on its content creation and
emphasizes on original content i.e. “Netflix originals.” It personalizes
everything. It sends you personalized emails with suggestions for you and it
also throws push notifications to users who’ve permitted them.
Fun Fact:
Somebody watched Madagascar3 352 times in 2017.
Netflix provided free subscription to a Sunil Chhetri fan in response to
his tweet and gifted the user with Sunil Chhetri photograph and his autograph
on it. Netflix really nailed it.
SUCCESS STORY
Success doesn’t come in a couple of weeks. It takes the right efforts
and the right timing to achieve success. Same goes with the success story of
Netflix, in initial stages it could a high revenue because it had to spent a
fraction of cost to buy DVD’s and had a flexible return policy with three-day
time.
It began its online streaming service in 2007, and it was the same year
when LCD TV sales grew in the US, so people were able to stream directly from
their tv screens. Opportunities come in different way for businesses and the
recession of 2008 turned out to be fruitful for Netflix, people found it
cheaper to stream on Netflix than to go out to the movies. Netflix followed
low-price, high-revenue philosophy, and it turned out to be an affordable and
reliable source for the families. The philosophy was keeping the price of a
single package low and the high revenue will come as a result of number of
subscribers.
It also has a special download and go feature that allows users to watch
shows offline, and has expanded into 130 new countries where people prefer to
watch videos on their cell phones. Thus, this feature allows improve mobile
experience.
In 2013, Netflix came out with its first original TV series- HOUSE OF
CARDS. Their artificial intelligence gave them the idea to produce the extended
series of classic shows.
Fun Fact:
57% of people cite original content as their reason for subscription.
A Netflix subscription saves you from 160 hours of advertising.
SUCCESS IN INDIA
The market of India has been quite challenging for Netflix. Coming up
shows having a story line of award-winning books like Sacred Games has proved
to be the right step for Netflix. Netflix has been focusing on creation and
proving the fact that customer is king.
With great offers like one-month free subscription, providing a wider
platform and the brand image can help Netflix to grow in Indian market. With
2.0 million subscribers in India, Netflix has a long way to go in Indian
market.
Fun Fact:
The addiction in India for Netflix is real. Indians are likely to binge
watch a show at a faster pace than rest of the world: 3 days vs the global
average of 4 days.
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